Pre-Money Valuation Calculator
Calculate pre-money valuation from a term sheet by subtracting the investment amount from post-money valuation and see ownership breakdown.
Post-Money Valuation Calculator
Calculate post-money valuation from the investment amount and equity percentage given, and see the implied dilution impact on existing shareholders.
$
%
Founder ownership before this round
%
Post-Money Valuation⧉
$12,000,000.00
Investment ÷ 25.00% equity
Pre-Money Valuation⧉
$9,000,000.00
Post-money minus investment
Founder Post-Round %⧉
60.00%
Was 80.00%, diluted by 25.00%
Founder Stake Value⧉
$7,200,000.00
Was $7,200,000.00 pre-round
Ownership Before & After
Before investment
Founders 80.00%
Others 20.00%
After investment
Founders 60.00%
New Investor 25.00%
Others 15.00%
Equity % Scenarios (at $3,000,000.00 investment)
| Equity Given | Post-Money | Pre-Money | Founder % |
|---|---|---|---|
| 10.00% | $30,000,000.00 | $27,000,000.00 | 72.00% |
| 15.00% | $20,000,000.00 | $17,000,000.00 | 68.00% |
| 20.00% | $15,000,000.00 | $12,000,000.00 | 64.00% |
| 25.00% | $12,000,000.00 | $9,000,000.00 | 60.00% |
| 30.00% | $10,000,000.00 | $7,000,000.00 | 56.00% |
| 35.00% | $8,571,428.57 | $5,571,428.57 | 52.00% |
| 40.00% | $7,500,000.00 | $4,500,000.00 | 48.00% |
Investment Amount Scenarios (at 25.00% equity)
| Investment | Post-Money | Pre-Money |
|---|---|---|
| $500,000.00 | $2,000,000.00 | $1,500,000.00 |
| $1,000,000.00 | $4,000,000.00 | $3,000,000.00 |
| $2,000,000.00 | $8,000,000.00 | $6,000,000.00 |
| $3,000,000.00 | $12,000,000.00 | $9,000,000.00 |
| $5,000,000.00 | $20,000,000.00 | $15,000,000.00 |
| $7,500,000.00 | $30,000,000.00 | $22,500,000.00 |
| $10,000,000.00 | $40,000,000.00 | $30,000,000.00 |
Planning notes, formulas, and examples
About the Post-Money Valuation Calculator
The Post-Money Valuation Calculator determines the implied total value of a company after an investment is made. If an investor puts in $2M for 20% equity, the post-money valuation is $10M ($2M ÷ 0.20). This is one of the most fundamental calculations in venture capital and startup fundraising.
Post-money valuation is particularly important for understanding SAFE (Simple Agreement for Future Equity) investments, where the valuation cap effectively sets the post-money valuation. It's also crucial for understanding how much of the company each existing shareholder owns after dilution from the new investment.
This calculator shows you the implied post-money valuation from various investment scenarios, the dilution impact on existing shareholders, and how different equity percentages affect the overall valuation picture. Understanding these dynamics is essential for founders evaluating term sheets and investors analyzing potential deals.
Use the result to compare scenarios, test assumptions, and revisit the model when pricing, volume, or financing inputs change.
When This Page Helps
Knowing your post-money valuation tells you and your investors what the company is worth immediately after funding. It sets the benchmark for the next round, determines each shareholder's economic stake, and influences employee option values. This calculator is especially useful when evaluating SAFE notes (which specify a post-money valuation cap), comparing term sheets from different investors, or modeling the dilutive effect of accepting various investment offers on your ownership.
How to Use the Inputs
- Enter the investment amount being offered or negotiated.
- Enter the equity percentage the investor will receive for that investment.
- The calculator automatically computes post-money and pre-money valuations.
- Review the implied pre-money valuation and the dilution to existing shareholders.
- Compare different investment-to-equity scenarios in the table below.
- Use the ownership visual to see how ownership shifts with this investment.
Formula used
Post-Money Valuation = Investment Amount ÷ (Equity % Given ÷ 100)
Pre-Money Valuation = Post-Money Valuation − Investment Amount
Existing Holder Dilution = 1 − (1 − Equity % Given ÷ 100)
New Ownership % of Existing Holder = Old % × (1 − Equity % Given ÷ 100)Example Calculation
Result: $12,000,000 post-money, $9,000,000 pre-money
A $3M investment for 25% equity implies a post-money valuation of $12M ($3M ÷ 0.25). The pre-money valuation is $9M ($12M − $3M). If a founder previously owned 80% of the company, their post-investment ownership drops to 60% (80% × 0.75), though the value of their stake increased from 80% of ~$9M ($7.2M) to 60% of $12M ($7.2M).
Tips & Best Practices
- Post-money valuation cap on a SAFE directly sets the price at which the SAFE converts to equity.
- Compare post-money valuations across offers to find the least dilutive deal.
- A higher post-money means less dilution today but sets a higher bar for your next round.
- Remember that post-money includes the new cash — so the company's enterprise value is still the pre-money.
- When multiple SAFEs convert simultaneously, the total dilution compounds across all of them.
- Post-money SAFEs are simpler to calculate than pre-money SAFEs but can lead to more founder dilution if multiple are issued.
Post-Money Valuation Fundamentals
Post-money valuation is the cornerstone calculation for any equity investment. It answers the simple question: what is this company worth right now, including the cash that was just invested? Every other number in a cap table flows from this figure, making it essential for founders, investors, and employees with stock options.
The Rise of Post-Money SAFEs
Y Combinator's post-money SAFE has become the default instrument for early-stage fundraising. Unlike the original pre-money SAFE, the post-money version guarantees the investor a specific ownership percentage (investment ÷ valuation cap). This simplicity eliminates ambiguity but can lead to more dilution for founders when multiple SAFEs are stacked before a priced round.
Dilution Impact Analysis
Every investment dilutes existing shareholders proportionally. If you give up 20% to a new investor, every existing shareholder's percentage drops by 20% of what it was. A founder with 60% ownership becomes 48% after the round. Understanding this math before negotiation prevents unpleasant surprises.
Valuation and Employee Equity
Post-money valuation directly impacts the paper value of employee stock options. A higher post-money makes existing options more valuable on paper, helps attract talent, and sets the 409A strike price for future option grants. This creates a virtuous cycle where successful fundraising improves your ability to recruit.
Sources & Methodology
Last updated:
Frequently Asked Questions
Post-money valuation is the total value of a company immediately after receiving an investment. It equals the pre-money valuation (the company's value before the investment) plus the investment amount. It's the number used to calculate each shareholder's ownership percentage.
Pre-money is the company's value before the investment; post-money is the value after. If a company is worth $8M before raising $2M, the pre-money is $8M and the post-money is $10M. The investor's 20% is calculated on the post-money ($2M ÷ $10M), while the founders' dilution is measured from pre-money.
A post-money SAFE (introduced by Y Combinator) specifies a post-money valuation cap. The investor's ownership percentage is simply their investment divided by the cap. For example, $500K on a $5M post-money SAFE gives exactly 10% ownership. It's cleaner math than the original pre-money SAFE structure.
In the short term, yes — a higher post-money means less dilution. But it also sets a higher bar for the next round. If the company doesn't grow fast enough to justify an even higher valuation, you risk a down round with painful consequences including anti-dilution adjustments and negative signaling to the market.
In a priced round, all investors share the same post-money valuation. If two investors each put in $1M at a $10M post-money, they each own 10%. The total new investment is $2M, pre-money is $8M. The post-money valuation is not doubled when there are multiple investors.
Seed-stage post-money valuations typically range from the low millions to the low tens of millions in major markets. The exact number depends on traction, team, market, and competitive investor interest. Early revenue companies command higher valuations than pre-product startups.
More in this topic
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